Large-Scale Destination Resorts

Over the past six years, Peterson Economics has been retained to complete market and financial analyses for more than 200 proposed new large-scale destination resorts, private club communities, and other large-scale second-home communities. Typically, these projects range in size from 1,000 to 6,000 acres, and include golf courses, lodging, spas, hundreds of residential units (lots, homes, condos, fractional units, etc.) and other components. Peterson Economics is typically retained to examine all major components of such projects and to formulate detailed development and market positioning recommendations, seeking to use amenities, club structure, theme, and marketing to maximize overall return on investment for our clients. The following is a sample of some of the major new resort projects evaluated by Peterson Economics in recent years:

Suncadia, Cascade Mountains, Washington State: a new multi-billion dollar master-planned resort community now under construction on a 6,300-acre site in the Cascade Mountains east of Seattle. The resort is being developed based closely on the development recommendations prepared by Peterson Economics in 2002. It will include three golf courses, about 3,000 second-home properties, a resort lodge and retail village, fractional, and other components. Sales began in 2004, with over 1,000 second-home properties sold to date—closely in line with Peterson Economics’ original projections. See detailed overview.

Brasada Ranch, Central Oregon: a new 1,800-acre high-end golf/spa/equestrian resort community near Bend, Oregon. The resort is being developed based closely on the development recommendations prepared by Peterson Economics in 2002. Real estate sales began in June 2005, with all 201 Phase 1 lots selling in two days, generating over $60 million in gross revenues. See detailed overview.

Spruce Peak at Stowe, Stowe, Vermont: a new, upscale, 221-acre 1,000-unit base village development. Peterson Economics completed four analyses for this project, which will include an 18-hole regulation-length golf course, approximately 30,000 square feet of retail and commercial space, an owner’s club, approximately 20 single-family homesites, 20 ski-in/ski-out duplex townhomes, and several hundred whole-ownership and fractional condominiums. As part of our ongoing research for this project, we completed an overview of ski-in/ski-out homesite pricing and prime unit pricing at 15 of the top destination ski resort areas nationwide. Sales began in 2004 and Spruce Peak has achieved by far the highest prices ever attained for resort real estate in the Northeast.

Rosario, Orcas Island, San Juan Islands, Washington: an existing resort in Washington’s San Juan Islands. Peterson Economics completed a market and financial analysis for Olympus Real Estate Partners evaluating re-development/re-positioning options for Rosario. We recommended positioning the resort as an upscale fractional club community, centered around the existing Moran Mansion and an expanded marina, featuring a club yacht and a variety of other club boats (with club memberships packaged with fractional interests). Olympus accepted our recommendations and spent the past several years obtaining entitlements for the new resort.

Maluaka, Maui, Hawaii: a proposed new ultra-high-end oceanfront resort in Makena. For this resort, Peterson Economics was asked to evaluate the relative costs and benefits of Four Seasons branding and affiliation. As part of this analysis, Peterson Economics examined top branded resorts throughout Hawaii, Mexico, the Caribbean and Costa Rica, and evaluated where branding adds value, how much, and why. Maluaka was proposed as the premier oceanfront condo community on Maui, with whole-ownership condo prices in the $4 million to $13 million price range ($1,700 to $2,400 per square foot).

Pronghorn, Central Oregon: an upscale new private golf club community situated near Bend, Oregon, featuring 18-hole private golf courses by both Nicklaus and Fazio, along with a spa, boutique hotel, and other amenities. Peterson Economics completed a market and financial analysis for a proposed new fractional resort within Pronghorn.

Resort at Paws Up, Missoula, Montana: a 10,000-acre ranch on the Blackfoot River near Missoula, Montana. Paws Up Ranch retained Peterson Economics to evaluate potential for a guest ranch, shared ranch, and/or private golf/equestrian/fishing club on this property and to formulate detailed development recommendations and financial projections for the project.

Arrecifes, San Carlos, Mexico: a proposed new 700-acre oceanfront resort on the Sea of Cortez, which would likely feature an oceanfront golf course, beach club, marina, and other amenities, along with a variety of whole-ownership and fractional real estate (and possibly a private jet providing access to the resort).

San Luis Pass, Galveston, Texas: a new 1,100-acre waterfront resort on the southwestern tip of Galveston Island, featuring about 1,000 residential units, along with a retail center, restaurants, a fitness center, a 350-slip marina and yacht club, an upscale beach club, and a network of beach-to-bay pedestrian trails. Sales are now underway with strong success to date.

Brian Head Ski Resort, Southern Utah: an existing ski area in southern Utah with a major expansion (including a new private golf/ski club community) planned. Peterson Economics completed a market and financial analysis for the owners of Brian Head seeking to determine: (1) what expansions the ski area should complete; (2) what is the highest and best use of six existing ski-in/ski-out development parcels around the resort; and (3) what is the highest and best use for a 1,700-acre parcel adjacent to the resort which could be developed to include a private golf club and private or semi-private ski hill.